Fidelity International favours emerging markets as recent sharp declines in their stock markets and tumbling commodities prices have produced cheap valuations, an executive of the mutual fund giant said on Thursday.
Shares of emerging markets, including China, India, Russia, eastern Europe and south Africa, dropped more than 56 percent in the 12 months to October, according to Fidelity International.
"The global economy is in a challenging downturn, but emerging markets still offer very attractive investment opportunities," Mark Hammond, product director for the U.S., global and emerging markets, told investors in Taiwan.
"We see growth in China and other emerging countries. Oil demand from China and India will rise in the future, the major driver to keep the global economy going," he said.
Among the stocks Hammond likes is Russia's Gazprom (GAZP.MM: Quote, Profile, Research), the world's largest gas producer. Its stock is trading at around 2.7 times forecast 2009 earnings after losing about two-thirds of its value since early this year, the U.S. money manager said.
Another one was South African supermarket chain operator Shoprite Holdings (SHPJ.J: Quote, Profile, Research), which is expected to post "explosive revenue growth" outside of its home market, the asset manager said.
Fidelity International is an affiliate of Boston-based Fidelity Investments, the world's biggest mutual fund company.
Shares of emerging markets, including China, India, Russia, eastern Europe and south Africa, dropped more than 56 percent in the 12 months to October, according to Fidelity International.
"The global economy is in a challenging downturn, but emerging markets still offer very attractive investment opportunities," Mark Hammond, product director for the U.S., global and emerging markets, told investors in Taiwan.
"We see growth in China and other emerging countries. Oil demand from China and India will rise in the future, the major driver to keep the global economy going," he said.
Among the stocks Hammond likes is Russia's Gazprom (GAZP.MM: Quote, Profile, Research), the world's largest gas producer. Its stock is trading at around 2.7 times forecast 2009 earnings after losing about two-thirds of its value since early this year, the U.S. money manager said.
Another one was South African supermarket chain operator Shoprite Holdings (SHPJ.J: Quote, Profile, Research), which is expected to post "explosive revenue growth" outside of its home market, the asset manager said.
Fidelity International is an affiliate of Boston-based Fidelity Investments, the world's biggest mutual fund company.
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